Indonesia intends to become another country integrating with the Unified Payments Interface (UPI) to more deeply enter India's digital public infrastructure. Unlike countries such as France, Singapore, and the UAE, which adopted UPI mainly to facilitate cross-border payments for Indian travelers and businesses, Indonesia's ambitions are much broader.
Digital Development Strategy
Indonesia views India's digital public infrastructure as a model for creating its own sovereign digital ecosystem. In addition to UPI integration, the country aims to develop compatible platforms for trade, digital identification, and public services that can eventually be exported to the ASEAN region.
High-Level Cooperation
The growing cooperation is expected to receive significant coverage during Prime Minister Narendra Modi's visit to Indonesia, starting on Monday, with digital cooperation becoming one of the key pillars of the bilateral partnership. An official representative noted: 'From food security and digital governance to healthcare, agriculture, and defense, successful models of Indian public policy are becoming valuable benchmarks for Indonesia's own development path.'
Social Sector Knowledge Exchange
Several Indonesian delegations have visited India to study flagship public policy initiatives, including the Public Distribution System (PDS), AgriStack, rice fortification, fertilizer subsidy reforms, PM POSHAN, and Jan Aushadhi. This is part of Jakarta's efforts to strengthen food security, agriculture, and healthcare provision.
Program Adaptation Examples
Indonesia's ambitious program to ensure nutritious meals draws inspiration from India's 'Mid-Day Meal' (PM POSHAN) scheme. Similarly, the 'Red and White Rural Cooperatives' initiative is exploring collaboration with India to provide affordable medicines through the Jan Aushadhi model, which helps improve access to healthcare in rural areas, an official representative stated.
Defense and Digital Trade
Indonesia is also working with New Delhi on issues of defense production, technology transfer, military training, and maritime cooperation, leveraging India's experience in domestic arms manufacturing under the Atmanirbhar Bharat initiative, which opens up new opportunities for long-term interaction. Central to the digital infrastructure partnership is the proposed UPI-QRIS link, which will enable seamless cross-border payments between the two nations, benefiting businesses, tourists, and traders.
For nearly 1.7 million Indian tourists who visit Indonesia annually, especially Bali, this payment corridor should simplify transactions while stimulating tourism and trade. Furthermore, the country is creating the Indonesian Open Network (ION), an open digital trade platform inspired by India's Open Network for Digital Commerce (ONDC).